Bank Rule Change Could Help Struggling Neighborhoods
The rule change is intended to give banks an incentive to increase investment in troubled areas.
"The agencies said under their proposed definition of 'community development,' a financial institution would receive favorable consideration for donating foreclosed properties to non-profit housing agencies in targeted, hard-hit areas.
'In addition, institutions would receive favorable CRA consideration if they provide financing for the purchase and rehabilitation of foreclosed, abandoned, or vacant properties,' the regulators said."
Thanks to The Overhead Wire